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Without comprehensive data , businesses struggle to grasp the full extent of their carbon footprint .
accurately . However , carbon accounting tools can help CIOs overcome these challenges , ensure compliance with evolving regulations and turn carbon reporting into a strategic business advantage .
Making carbon visible and tracking Scope 3 emissions
Scope 3 emissions represent the largest and most complex portion of a company ’ s carbon footprint . Unlike Scope 1 ( direct emissions ) and Scope 2 ( indirect emissions from purchased energy ), Scope 3 encompasses all indirect emissions from both upstream and downstream activities . This includes emissions from raw material sourcing , transportation and even the end-use and disposal of products .
The sheer breadth of Scope 3 means that businesses must rely on data from numerous external partners , such as suppliers , logistics providers and customers . Without the right tools and expertise , collecting , processing and verifying this data can be a timeconsuming challenge .
A lack of visibility into Scope 3 emissions is a major obstacle . Without comprehensive data , businesses struggle to grasp the full extent of their carbon footprint , let alone take action to reduce it . As a result , they risk falling short of regulatory requirements such as the CSRD and other ESG legislation and missing the opportunity to address the largest share of their emissions .
In addition , companies may struggle to set realistic reduction targets , putting themselves at risk of facing future setbacks . This underscores the importance of accurate carbon accounting , which can empower businesses to identify emissions hotspots , uncover hidden efficiencies and make more informed sustainability decisions .
Leveraging carbon accounting technology
This is where carbon accounting technology becomes indispensable for businesses . Carbon accounting platforms serve as centralised systems that collect , process and report emissions data from across a company ’ s operations and supply chain .
Beyond reporting compliance , carbon accounting tools also serve as a robust shield for data protection . By automating the collection of emissions data from multiple points across a supply chain , these tools ensure that both internal and supplier data are securely managed , safeguarding sensitive information while streamlining reporting processes . With data spread across a wide network of suppliers , having a centralised platform is essential not only for accurate reporting but also for maintaining the highest standards of data security and compliance .
Another key role technology plays is transforming raw emissions data into actionable insights . By leveraging
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